PARLIAMENTARY DEBATE
Lifetime Skills Guarantee and Post-16 Education - 1 October 2020 (Commons/Commons Chamber)
Debate Detail
What we are determined to do, and what we must do, is give people the opportunity to retrain and upskill, so that if one door closes, they will have the key to open others. This Government stand for empowering everyone in this country, wherever they live. We stand for the forgotten 50% who do not go to university. We stand for those who find that their jobs no longer exist because technology has redefined industries overnight. We stand for young and old alike. Talent exists everywhere in this country. We have to ensure that we give it every opportunity to flourish, wherever people come from.
Two days ago, the Prime Minister outlined plans to bring closer alignment between further and higher education, to end the outdated distinction that one is better than the other and to offer world-class education after the age of 16 that is fit for the 21st century. We want every student who has the ability and the desire to go to university to do so, but we also want all young people to be given a real choice in what route they take.
We will introduce a lifetime skills guarantee that will help people to retrain and upskill. This will be the backbone of our covid recovery and will enable us to come back stronger and build back better. The measures will embed greater flexibility in the technical and vocational system to support not just young people but adults who need to retrain and upskill at any point in their working lives.
This is not merely a response to the pandemic. It is a continuation of our whole-hearted commitment to level up every inch of the country. Our reformed apprenticeships programme already provides a vital route for employers to meet their skills needs and for apprentices to learn and earn through high-quality training programmes and on-the-job experience. We are going to expand apprenticeships, making it easier for people to get a high-quality apprenticeship, and connect them to local employers who know what jobs their industry or community will need in the future.
We know that some employers will be nervous of taking on apprentices in the current climate. We are therefore making sure that we address some of the barriers that employers, especially small and medium-sized businesses, face in taking on apprentices—for example, by making it easier for larger employers to transfer their unused levy funds to smaller employers. Where apprentices have been made redundant as a result of the pandemic, we will ensure that more of them have the opportunity to continue their training. We have just begun the roll-out of T-levels, our new high-quality technical and vocational qualifications, and we have just welcomed the first intake of students, who are taking them in digital, education and childcare, and construction. One T-level is the equivalent of three A-levels, and these qualifications will open up further routes of study or employment for those who take them.
For those who have not achieved the equivalent of A-levels by the age of 18, the chances of proceeding to higher levels of qualifications are, as Philip Augar’s report put it, “virtually non-existent”. The lifetime skills guarantee will therefore fund technical courses equivalent to A-levels for adults, all of which teach skills that are in high demand in our economy. These will give anyone who left school without an A-level or its equivalent the qualifications they need to upskill or to change jobs, and give them a much better chance of finding work, achieving their dreams and doing what they want in life. We have already announced plans to sharpen the job focus and the quality of higher technical education. The process of getting employers to review and approve the best digital higher technical qualifications began last month. We want to invest in, and increase take-up of, these courses as they are developed to meet the skills needs of the economy.
Another key element of the lifetime skills guarantee is to open up funding and alternatives to degrees for students. We are going to transform the funding system so that people can get a loan just as easily for a higher technical course as they can for a university degree, and we will ensure that further education colleges have access to funding on the same terms as universities do. Everyone will be able to call on a flexible lifelong loan entitlement for four years of post-18 education, so any adult who wants or needs to retrain with high-level technical courses can do so, instead of being trapped in unemployment.
Our flexible lifelong learning allowance is going to enable people to study high-quality courses across further and higher education at a level and time that best suits their life. This will make it easier for people of all ages to do courses locally and to study and train part time to acquire the skills that can transform their lives. This new arrangement will provide finance for shorter-term studies, rather than people having to study in one, three or four-year blocks. People will be able to break up their study into segments, transfer credits between colleges and universities, and take on more part-time study. We will consult on this matter next year and bring forward legislation as necessary later in this Parliament.
We also want to transform our left-behind towns and regions, but we are not doing this just by investing more money in universities. We are going to do it by investing in local colleges. In the spring Budget, we announced an additional £1.5 billion to upgrade the further education college estate. The largest capital investment in the sector in a generation, it will enable colleges everywhere in England to have buildings and facilities that can deliver world-class tuition.
We are setting up 20 employer-led institutes of technology with capital funding for state-of-the-art equipment and facilities. They will be specialist institutions that are a unique collaboration between employers, colleges and universities. They will give businesses the skilled workforce that they need to drive growth and productivity and get more people into rewarding jobs. We have already committed £170 million to establishing the first 12 institutes and are making a further £120 million available for another eight in areas of the country currently without access to one. The competition for the next wave will open shortly.
We are going to inject £111 million in the largest ever expansion of traineeships, as well as an extra £32 million for recruiting extra careers advisers and £17 million for work academies in England. We are also providing £101 million to support school and college leavers to take high-value level 2 and level 3 courses.
Even before covid, the country faced a challenge in terms of providing the skills that the country needed. We are desperate for more skills in digital, and more electricians and technicians, right across the board, from healthcare to construction. Our productivity continues to lag behind that of our neighbours and competitors—Germany, France and the United States all produce more than 25% more per hour than we do. If we were to match German productivity, it would enable us to recoup billions of pounds that we need to recover from the economic effects of covid. Put another way, our productivity levels are only 4% higher than they were in 2008.
To bounce back from the pandemic, we will need a lot more people with the vital skills to drive productivity in our economy. Technology is one area with an ever-growing need for skills. This week, the Prime Minister announced that £8 million would support boot camps for digital skills in the west midlands, Liverpool, Lancashire, Leeds, the south-west, Derbyshire, Nottinghamshire and Manchester. The boot camps will be led by local employers, and from next year we hope to extend the delivery model to other areas and other sectors.
Greater productivity will drive our economy as we seek to build back better after covid. Businesses will be able to hire more, people will earn more and the quality of life will be much greater for more of our citizens. We will publish a White Paper later this year to take a holistic look at post-16 education and training. It will set out how we will continue to rebalance higher and further education, making sure that people understand the benefits of a greater technical education that offers them flexible ways to get the skills needed to progress and for our economy to prosper.
This is not a subject that just Conservative Members feel passionately about; it is something all Members feel incredibly passionately about. It is something that I think we all recognise is an area that has maybe been neglected a little bit too much in the past, and I hope that there is a sense of will across both sides to work together to make changes and to make improvements for the life chances of all.
I believe this dynamic programme of measures is not just about weathering the covid storm; these reforms will lay down a marker for the age. They will bring an end to the post-16 career lottery and decades of indifference to further education, and they will set up each and every member of society with the means to get a satisfying and well-paid job. I commend this statement to the House.
As the right hon. Gentleman said, on the Labour side of the House, we, too, passionately believe in the value of further and adult education for individuals, for their communities and for our shared prosperity. I do think that many of the announcements the Secretary of State has made are a step in the right direction. Indeed, I have no doubt that he does believe we need more investment in further education, so I can only imagine that he was appalled to discover which party has been in office for the past 10 years and which party has spent those years slashing funding for further education, cutting maintenance support for learners and building barriers to further study. Will the Secretary of State now admit to the House that it was a mistake to cut billions of pounds from further and adult education and that the advanced learner loan system, which has deterred so many adult learners from studying, has had a devastating impact on their life chances?
I turn to the specific proposals outlined by the Secretary of State and, first, the lifetime skills guarantee. I am glad that he has acknowledged, as Labour has long argued, that more people need access to further education and retraining, particularly given the challenges our economy now faces, but many learners who could benefit from these new funded courses will not be eligible. For those training beyond level 3, he appears to be offering only a flexible loan system, but his own Department’s research shows that the introduction of loans caused participation in adult education to plummet. Why is he repeating this failed approach? What about those who do not hold level 2 qualifications? What funding will be available for them to study for level 2, so they can then progress to level 3 and further? I am sure the right hon. Gentleman would agree that he cannot credibly say that he wants equality between further and higher education if only one route brings maintenance support, so will the learners who study for these new funded courses be eligible for that support?
Next, I turn to funding. Additional investment in further and adult education is obviously welcome, which is why we on the Labour Benches have spent years advocating it, while year after year the Conservative party cut it. The funding that the Secretary of State has announced today will not even reverse the damage, let alone mean increased investment. Funding is supposed to be available for every adult who is not qualified to A-level or equivalent. There are 9 million of those people in the country. Can the Secretary of State guarantee that every single adult not qualified to level 3 who wants to access this support will be able to do so? His £2.5 billion amounts to less than £280 for each of these learners. Does he really think that is sufficient for an adult learner to get the necessary skills and qualifications? He has stated that a full level 3 qualification would be made available for adults aged over 23 for courses that are shown to be valued by employers. How are the Government determining that? Will he commit to a date to publish these details? I think that he said that T-levels will be included. Will he confirm that?
What conversations has the right hon. Gentleman had with the devolved authorities and Metro mayors about these proposals? Will metropolitan combined authorities that have their adult education budget devolved be able to set the eligibility criteria for this spending, and is the £8 million for the boot camps genuinely new money? He talks about increasing apprenticeship opportunities, but since the Government introduced the apprenticeship levy, numbers have been consistently down, especially at lower levels. Can he provide more detail on the support available for small and medium-sized enterprises and non-levy payers?
Finally, I want to emphasise the scale and urgency of what is needed. The Government rightly found billions of pounds for the job retention scheme, but when it comes to retraining, their ambitions do not stretch further than last year’s manifesto, as though the global pandemic has had no impact on the need for workers to get new skills and new jobs. Labour called for the Government to integrate training into the job support scheme to allow workers on reduced hours to improve their skills. Why have the Government failed to do that?
The Office for Budget Responsibility’s central projection is for unemployment to reach 12% before the end of the year. That is when the need for skills and retraining will be most acute, so why is this package available only from April next year? Will courses starting under the new guarantee begin in April or follow the usual academic calendar? Why has the procurement of the contract for the 30,000 traineeships announced in July not yet even begun?
Labour has spent years calling for investment in the skills of working people and those seeking work. They are, and always have been, the greatest asset in our economy. It is only by making the most of all their potential that we can truly recover from the effects of this terrible pandemic and achieve a lasting and shared prosperity. We now face a crisis of unemployment that could be the worst in my lifetime. It is vital that the Government support those at risk of losing their jobs and that they support them in finding new careers and opportunities. The Government must get this right, and they have one chance to do so. I implore Ministers to listen to our concerns. The task is urgent, and it is essential.
When Labour was in power, what did it do? It talked about one thing—“Universities, universities, universities”. That was the answer to the problems of a nation. Government Members recognise the need to make sure that young people have true opportunities. It is about not just the 50% of youngsters who go to university, but the other 50% of youngsters and making sure that they have the opportunities and qualifications that they deserve. They should have an entitlement and the opportunity to take those up.
We have launched the skills toolkit, which has had a transformational impact on so many people who have taken furlough. The hon. Lady talks about numbers over time in terms of apprenticeships. On the Government side of the House, we talk about quality. We recognise that it is important to drive up the quality of apprenticeships, as against simply numbers. When we talk to employers, they say that they want to see quality driven up in terms of apprenticeships and that is what we are doing.
We will have the roll-out of T-levels. Labour is always ambiguous on whether or not it supports T-levels. It supported them at the launch, but then it seemed to change its policy. With a new shadow Education Secretary, it has probably changed its mind again. As we roll these out, we would very much like to see them as part of this.
In terms of the eligibility, this is a national guarantee. It will be determined nationally—that is where the decision will be taken. It will not be devolved to the mayoral authorities, but we will continue to work with employers, organisations and the mayoral authorities to make sure that we get the right skills mix so that the qualifications that are on offer ensure that young people and people of all ages have the opportunity to progress into work.
Many times, however, I have been lectured by Government Members about university numbers. They cannot have it both ways. If further education in England has been playing second fiddle to higher education, it is because the Secretary of State’s Government have treated it as such. As Scotland has invested in the entire tertiary education landscape, FE in England has suffered a decade of neglect. So can the Secretary of State confirm whether this lifetime loan entitlement means that FE students in England will now be saddled with the same massive debts as their HE counterparts, and since his Government seem to be open to new ideas, when will he be readdressing the issue of their outrageous tuition fees?
I welcome the long-overdue investment in FE infrastructure in England, but will the Secretary of State acknowledge that if he were to match Scotland’s facilities funding, the figure he would be announcing today would be not £1.5 billion, but £8 billion?
Finally, the Scottish Government have committed to a lifelong learning strategy and are investing £25 million to support adults retraining. However, similar courses will not be available in England until April 2021. Those whose jobs have been affected by covid cannot wait seven months, so will the Secretary of State work with colleagues to ensure this funding is brought forward and people can start training immediately?
I understand the impact that these measures will have for some people, but I must say that they do not show the kind of ambition that we need, the kind of ambition that will match the scale of the opportunity that we face. We should be awash as a country; every community should be burgeoning with educational opportunities right now, and we are not going to do that on the back of these announcements.
Will the Secretary of State say what contact he has had with the Department for Work and Pensions to ensure that every aspect of Government is extending educational opportunity to every part of our communities? What conversations is he having with other Departments, such as the Ministry of Housing, Communities and Local Government, to ensure that we are proactively putting educational opportunities into every community up and down our country? Right now, these measures are fine, but it does not match the scale of opportunity that our country needs and faces.
Virtual participation in proceedings concluded (Order, 4 June.)
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